The Australian Consumers Insurance Lobby Inc (ACIL) is pleased to announce the release of its first comprehensive evaluation report on the Cyclone and Cyclone-Related Flood Reinsurance Pool (the Pool), titled " Under the Lens: ACIL's First Evaluation of the Cyclone and Cyclone-Related Flood Reinsurance Pool".
ACIL's evaluation was less than commendable of the Pool, emphasising a "needs improvement" verdict. The observation that the Pool offers limited to no substantial savings for consumers underscores the urgency for proactive measures to enhance its effectiveness. ACIL calls on policymakers to stay the course and initiate necessary changes before the 2025 review to avoid missing opportunities for timely improvements.
Key concerns raised by ACIL in the report spotlight the inequity where Northern Communities shoulder the financial burden of cover for their southern counterparts. The necessity of a comprehensive review of the current modelling is underscored, highlighting the importance of accuracy and fairness in distributing the pool's benefits. ACIL also provided a less than flattering assessment of insurers' interactions with the Pool.
ACIL's report not only highlights challenges but also offers solutions. Recommendations on reducing premiums linked to cyclone cover are put forth. ACIL advocates for an expanded eligibility framework for the pool, a move that encompasses sectors such as marine insurance, which grapples with soaring premiums, high cyclone excesses, and gaps in coverage for cyclone events.
ACIL was in Canberra on 11th & 12th September to meet with Assistant Treasurer Stephen Jones and Joint Select Committee Members for Northern Australia, including, Hon Warren Entsch MP, Mr Luke Gosling OAM MP, Senator Dean Smith, and Mr Andrew Willcox MP.
"We are excited to share the results of our in-depth evaluation of the Cyclone Reinsurance Pool. This report underscores our dedication to ensuring an insurance landscape that truly serves the interests of consumers." states Tyrone Shandiman, Chairperson at ACIL. The discussions we had with the Assistant Treasurer and members of the Joint Select Committee for Northern Australia were receptive, and we expect they will yield tangible benefits for consumers."
This release marks a pivotal moment for the insurance sector in Northern Australia. It lays the foundation for inclusive, affordable, and efficient insurance protection, reinforcing a brighter future for communities across the region.
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